When Rome was founded, Italian territory was divided into many different tribes: mainly Etruscans and Celts in the north, Greeks in the south and Latins in the central part: the latter ones were just weak sheperds, much less civilized than all others.
Inhabited since deepest prehistory, (middle and recent Paleolithic), Rome was steadily occupied by Latins during the 2nd millenium BC: these early inhabitants were Indo-europeans who came from North (Eastern Central Europe) and settled in North East (Veneti) and Central Italy (Prisci Latini). Their habits and traditions were much different from Etruscans’, expecially their origins (Etruscans were mediterranean, while Latins came from continental Europe), burial rites (great tumuli-Etruscans, incineration-Latins) and language (Etruscans were not Indo-europeans).
The very first village on Capitol hill was founded in 1400 B.C. during Bronze Age: recent excavations brought to light a large burial ground, seeds and remains of huts.
In 9th century BC there was already a big urban nucleus which included Palatine, Velia and Capitol hills , a market towards the Tiber river and a burial ground in the forum site: the Palatine became political heart while Capitol used to be the holy acropolis: the traditional birthdate of the city (april the 25th, 753 BC) maybe should be referred to the rise of Roman State.